HomeMy WebLinkAbout05.20.24 EDA Packet
Meeting Location:
Farmington City Hall, Conf. Room 170
430 Third Street
Farmington, MN 55024
ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA
Monday, May 20, 2024
5:30 PM
Page
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVE AGENDA
5. CITIZEN COMMENTS
6. CONSENT AGENDA
6.1. Minutes of the March 18, 2024 Economic Development Authority
Meeting
Approve the minutes of the March 18, 2024 Regular EDA meeting.
Agenda Item: Minutes of the March 18, 2024 Economic Development
Authority Meeting - Pdf
3 - 7
6.2. Monthly Financial Report
Accept monthly Financial Report.
Agenda Item: Monthly Financial Report - Pdf
8 - 9
6.3. Quarterly Report - Open to Business (Q1 2024)
No action requested. Report is provided for informational purposes only.
Agenda Item: Quarterly Report - Open to Business (Q1 2024) - Pdf
10 - 15
7. PUBLIC HEARINGS
8. DISCUSSION ITEMS
8.1. Choose Vice-Chairperson for the EDA for Remainder of 2024
16
Page 1 of 36
Select a Vice-Chairperson.
Agenda Item: Choose Vice-Chairperson for the EDA for Remainder of
2024 - Pdf
8.2. Small Business Resource Fair
No action needed.
Agenda Item: Small Business Resource Fair - Pdf
17 - 18
8.3. 2023 MicroGrant Awards and Updates
No action needed.
Agenda Item: 2023 MicroGrant Awards and Updates - Pdf
19 - 22
8.4. 2025 Budget - Preliminary Discussion
No formal action is requested. The EDA is asked to discuss the existing
budget, existing work plan, and provide direction on future funding
levels.
Agenda Item: 2025 Budget - Preliminary Discussion - Pdf
23 - 31
9. DIRECTOR'S REPORT
9.1. Director's Report
No action requested. This item is information and is provided to
communicate how the EDA time and money resources are allocated,
and to track and measure the impact of initiatives.
Agenda Item: Director's Report - Pdf
32 - 36
10. ADJOURN
Page 2 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Shirley Buecksler, City Clerk
Department: Administration
Subject: Minutes of the March 18, 2024 Economic Development Authority Meeting
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
For approval are the minutes of the March 18, 2024 Regular EDA meeting.
DISCUSSION:
Not applicable
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
Approve the minutes of the March 18, 2024 Regular EDA meeting.
ATTACHMENTS:
03.18.24 EDA Minutes
Page 3 of 36
Economic Development Authority Meeting Minutes of March 18, 2024 Page 1 of 4
City of Farmington
Economic Development Authority
Regular Meeting Minutes
Monday, March 18, 2024
The Farmington Economic Development Authority met in regular session on Monday,
March 18, 2024, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota.
1. CALL TO ORDER
Chair Wilson called the meeting to order at 5:36 p.m.
2. PLEDGE OF ALLEGIANCE
Chair Wilson lead everyone in the Pledge of Allegiance.
3. ROLL CALL
Members Present: Chair Steve Wilson
Commissioners Holly Bernatz, Joshua Hoyt, and Nick Lien
Members Absent: Commissioner Katie Porter (excused absence)
Also Present: Lynn Gorski, City Administrator
Julie Flaten, Asst City Administrator/HR Director
Deanna Kuennen, EDA Executive Director
Stephanie Aman, Economic Development Coordinator
Kellee Omlid, Parks and Recreation Director
John Powell, Public Works Director
Shirley Buecksler, City Clerk
4. APPROVE AGENDA
Motion was made by Commissioner Bernatz and seconded by Commissioner Hoyt to
approve the agenda, as presented.
Motion carried: 4 ayes / 0 nays
5. CITIZEN COMMENTS
No one addressed the Commission to speak.
6. CONSENT AGENDA
6.1 Minutes of the January 16, 2024 Economic Development Authority Meeting
6.2 Annual EDA Business – Acknowledgement of Official Newspaper and
Establishing the Meeting Schedule
6.2 Monthly Financial Report
Page 4 of 36
Economic Development Authority Meeting Minutes of March 18, 2024 Page 2 of 4
Motion was made by Commissioner Hoyt and seconded by Commissioner Bernatz to
approve the Consent Agenda, as amended.
Motion carried: 4 ayes / 0 nays
7. PUBLIC HEARINGS
There were no public hearings.
8. DISCUSSION ITEMS
8.1 Election of 2024 EDA Chairperson and Vice-Chairperson
Motion was made by Commissioner Hoyt and seconded by Commissioner Lien
to elect Steve Wilson as Chairperson and Katie Porter as Vice-Chairperson for
2024.
Motion carried: 4 ayes / 0 nays
8.2 Approval of Joint Powers Agreement with Dakota County CDA for the Open to
Business Program
The Open to Business program provides one-on-one technical assistance in the
form of business plan development, feasibility analysis, marketing, financial
projections, operational analysis, loan packaging, and other to small businesses
and entrepreneurs intending to establish, purchase, or grow/improve a business
in Dakota County. The cost of the program is shared with the CDA and the
participating communities - covering the direct and indirect staffing needs for the
program. The annual cost for the program for the next three years in $165,00,
which is a small increase from the last contract. The CDA's annual investment is
$86,720, and Farmington's share is $5,500.
Motion was made by Commissioner Hoyt and seconded by Commissioner Lien
to approve the 2024 Joint Powers Agreement with the Dakota County CDA for
the Open to Business Program and authorize execution of the Agreement.
Motion carried: 4 ayes / 0 nays
8.3 Resolution 2024-01 Authorizing Transfer of Funds for City AUAR Review
Process
The City is anticipating potential development of two large areas of land. Due to
the size of these areas, some level of environmental review will be required. The
Alternative Urban Areawide Review (AUAR) process has been determined to be
the preferred environmental review method which will provide compliance with
Minnesota Rule 4410 and offer flexibility for different development options.
Minnesota Statutes and the EDA's Enabling Resolution provide authority for the
EDA to expend funds for the benefit of economic development.
Page 5 of 36
Economic Development Authority Meeting Minutes of March 18, 2024 Page 3 of 4
Motion was made by Commissioner Bernatz and seconded by Commissioner
Lien to adopt Resolution 2024-01 Authorizing Transfer of Funds for City’s AUAR
Review Process.
Motion carried: 4 ayes / 0 nays
8.4 Authorize Staff to Submit Letter of Support to Minnesota Department of
Agriculture in Support of Farmington Food and Spice House’s Grant Application
Motion was made by Commissioner Hoyt and seconded by Commissioner Lien
to authorize staff to submit a letter of recommendation to the Minnesota
Department of Agriculture in support of Farmington Food and Spice House ’s
grant application.
Motion carried: 4 ayes / 0 nays
8.5 Discuss Sponsorship Levels for Minnesota Real Estate Journal Awards Night
Minnesota Real Estate Journal (MREJ) is a strategic marketing partner for the
City of Farmington. Each year, MREJ holds an awards competition for many
different categories. This year, the City of Farmington is a finalist in two (2) of
those categories - Deanna Kuennen is a finalist for Economic Developer of the
Year and the City of Farmington is a Finalist for City/County of the Year.
Staff would like the EDA to specifically consider a full table sponsorship level of
$2,950 which allows the City ten (10) attendees at this celebratory event. Half
table sponsorship is also available for $1,750 and allows the City five (5)
attendees.
Motion was made by Commissioner Bernatz and seconded by Commissioner
Hoyt to approve the full table sponsorship level of $2,950 and allowing the City
ten (10) attendees at the Minnesota Real Estate Journal Awards Night event.
Motion carried: 4 ayes / 0 nays
9. DIRECTOR’S REPORT
9.1 Director’s Report
Director Kuennen provided her report and shared a video of Stephanie Aman
winning her award as the 2024 Emerging Professional of the Year from the
Economic Developers Association of Minnesota.
Page 6 of 36
Economic Development Authority Meeting Minutes of March 18, 2024 Page 4 of 4
10. ADJOURNMENT
Motion was made by Commissioner Hoyt and seconded by Commissioner Bernatz to
adjourn the meeting at 6:26 p.m.
Motion carried: 4 ayes / 0 nays
Respectfully submitted,
Shirley R Buecksler
City Clerk
Page 7 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: EDA
Subject: Monthly Financial Report
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
Attached is the monthly Financial Report through May 1, 2024, which includes a year-to-date
summary of expenditures.
DISCUSSION:
Attached is the monthly Financial Report for May 2023, including a summary of year-to-date
expenditures. The expenditures are consistent with the approved EDA work plan and 2024 budget.
Items to note: The 2024 budget included $51,000 of "remaining proposed revenue" that was
unprogrammed and was intended to be used for items such as "site readiness, implementation of
community vision, etc." Of these funds:
$39,900 has been designated to fund the Alternative Urban Area Review (EDA Resolution
2024-01)
$6,000 is proposed to fund a structural analysis of buildings located on PID 140310022012
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
Accept monthly Financial Report.
ATTACHMENTS:
MAY FINANCIAL REPORT - 2024 YTD
Page 8 of 36
Business
Unit
Object
Account
Account
Description
Cumulative 5
Actual
2024
Cumulative 5
Budget
2024
SUMMARY OF EXPENDITURES
2000 - HRA/ECONOMIC DEVELOP 6280 BOOKS & SUBSCRIPTIONS 0.00 150.00
2000 - HRA/ECONOMIC DEVELOP 6401 PROFESSIONAL SERVICES 37,500.00 5,000.00 *Includes: My Town (25,000) and SLP (12,500) - both were originally included in "other"
2000 - HRA/ECONOMIC DEVELOP 6403 LEGAL 728.50 3,000.00 Primarily RIG and AUAR related
2000 - HRA/ECONOMIC DEVELOP 6426 INSURANCE 125.56 600.00
2000 - HRA/ECONOMIC DEVELOP 6445 POSTAGE/SHIPPING FEES 0.00 1,000.00
2000 - HRA/ECONOMIC DEVELOP 6450 OUTSIDE PRINTING 241.77 2,500.00 Materials for SLP and Conferences
2000 - HRA/ECONOMIC DEVELOP 6455 LEGAL NOTICES 0.00 500.00
2000 - HRA/ECONOMIC DEVELOP 6460 MEMBER DUES & LICENSURE 8,260.05 3,500.00 Includes: Chamber (2,500), CVN (4,500 originally included in "other"), EDAM (545), MMP (700)
2000 - HRA/ECONOMIC DEVELOP 6470 TRAINING & SUBSISTANCE 856.43 5,000.00 Includes: EDAM Winter (2), DRC (2), MMP Qrt 1
2000 - HRA/ECONOMIC DEVELOP 6485 MILEAGE REIMBURSEMENT 489.84 3,000.00
2000 - HRA/ECONOMIC DEVELOP 6505 EQUIPMENT REPAIR/MAINTENANCE 0.00 1,000.00
2000 - HRA/ECONOMIC DEVELOP 6550 DEVELOPER PAYMENTS 0.00 50,000.00
2000 - HRA/ECONOMIC DEVELOP 6570 PROGRAMMING EXPENSE 0.00 10,000.00
2000 - HRA/ECONOMIC DEVELOP 7420 OTHER 12,950.00 64,750.00 **Includes: MREJ Marketing (10,000), MREJ Sponsorship (2,950)
Total 2000 - HRA/ECONOMIC DEVELOPMENT 0.00 -51,000.00
0.00 -51,000.00
0.00 -51,000.00
*Prof Services **Other
5,000.00$
Avail for financial
consult., etc.64,750.00$ 25,000.00$
9,800.00$ 12,500.00$
4,500.00$
10,000.00$
2,950.00$
54,950.00$
9,800.00$
Available for SLP travel and other strategic marketing
MAY 2024 and YTD BUDGET
Pa
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3
6
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: EDA
Subject: Quarterly Report - Open to Business (Q1 2024)
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
At the March EDA meeting, the EDA committed to their continued participation in a Joint Powers
Agreement with the Dakota County Community Development Agency (CDA) related to the Open to
Business Program - provided by the Metropolitan Consortium of Community Developers. The Open
to Business Program provides technical assistance and access to capital to small businesses and
potential entrepreneurs in Dakota County. As required, the Dakota County Open to Business,
Business Advisor provides a quarterly report outlining clients served and case studies. Attached is
the Q1 2024 Report.
DISCUSSION:
Open to Business provides technical assistance and access to capital to small business and
potential entrepreneurs in Dakota County. Through the joint powers agreement, communities within
the county agree to leverage their individual funds for this important service. In addition to the
technical assistance and access to capital that is provided directly to the small businesses and
entrepreneurs, the designated Business Advisor, Natalie Mouilso, meets monthly with City Staff and
will also be participating in the summer Business Resource Fair.
The summary of Q1 2024 activity is attached.
BUDGET IMPACT:
$5,500 annually specifically included in the EDA budget
ACTION REQUESTED:
No action requested. Report is provided for informational purposes only.
ATTACHMENTS:
Q1 2024 - Dakota County OTB Narrative Report
Page 10 of 36
Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952 -451-6390
First Quarter – 3/31/2024
Clients Served YTD
Client Inquiry 01
Existing - Challenged 08
Existing -Opportunity 22
Pre-start planning 29
Start-up 16
Total 76
Business Owner Demographics YTD
# of Clients
Low-Income Owned 40 (52%)
BIPOC or Immigrant Owned 43 (57%)
Woman Owned 37 (48%)
Financing & Access to Capital YTD
Loans & Grants
Approved (YRLY Total) $ 42,240.00
Equity (YRLY Total) $ 460,000.00
Facilitated (YRLY Total) $ 18,000.00
Total Investment $ 520,240.00
Program Hours
TA Program HRS
1st QTR 348 251
Total 348 251
TA: Client Meetings, Providing Resources, Client Calls, Client Deliverables, Loan Packaging
Program HRS: City Initiatives, Program Outreach, Public Events, City Meetings, Research, Data/Admin, General Inquiries
Page 11 of 36
Open to Business Report
2
Industry Segment YTD
Construction / Real Estate 0
Food 15
Health/Fitness 12
Manufacturing 2
Consulting 5
Retail 10
Service 16
Other/Undecided 9
Total 76
Referral Source YTD
Bank Referral
13
Entrepreneur 5
Friends and Family 7
Municipality 14
MCCD Partner 8
Other 8
Web 21
Total 76
City YTD Business Resident
Apple Valley 13 07
Burnsville 15 07
Eagan 10 07
Farmington 02 05
Hastings 07 03
Inver Grove Heights 03 03
Lakeville 08 11
Mendota Heights 01 01
Rosemount 02 02
South St. Paul 02 02
West St. Paul 06 03
Other Dakota Co. 00 00
Other/ No Data 08 26
“The Open to Business program has been instrumental in helping me create my website, and I couldn't be more
grateful for their expertise and dedication. Their commitment to empowering individuals and organizations through
their services is truly commendable. From the initial brainstorming sessions to the final touches, the Open to Business
program provided invaluable guidance and support every step of the way. Their team's professionalism and passion
for their work were evident throughout the entire process. Thanks to the Open to Business program’s assistance, my
website now serves as a vital platform for sharing information, connecting with my audience, and advancing my
mission. Their contribution has not only enhanced my online presence but has also helped me further my goals and
objectives. Thank you, Open to Business for your unwavering support and dedication to helping individuals like me
succeed in the digital world.” Lakeville Business Owner, OTB Client
Page 12 of 36
Open to Business Report
3
Direct Financing & Access to Capital
Business Type: fast casual pizza franchise
Business City: Apple Valley
Residence City: Lakeville
Referred by: Bank Partner
MCCD Financing: $42,000
Owner Equity: $460,000
Other Financing: $18,000 MN DEED Small Business Loan Participation Program
Overview: MCCD began working with this recent startup in Fall, 2023. The business sought working capital to
implement a marketing plan to build local awareness and grow sales. Through MCCD, the business spent four
months working closely with a bookkeeping/accounting advisor to gain skills and expertise in financial
management of the business. They wrote a marketing plan and met with independent consultants to get
additional insight into their business operations. The business was approved for the MCCD loan in early April
with 30% participation from MN DEED SBLPP. The business is owned by four immigrants and is expected to
employ a total of 7 after the market plan is implemented.
Credit Builder Loans
In collaboration with nonprofit partners who provide credit building & financial awareness counseling, MCCD provides
$240 Credit Builder Loans (CBLs) to qualified applicants seeking to improve their personal credit. Credit Builder
applicants complete financial training through MCCD’s partners and are then referred to MCCD for a CBL. MCCD
generates and services the CBLs in-house.
2024 Credit Builder Loans YTD
Resident City Loan Amount
Inver Grove Heights $240
TOTAL $240
Highlights, Networking, & Outreach
Staffing Updates
• MCCD welcomes Maria Thor as our newest member of the Business Advisor team. Maria comes to MCCD with
vast experience in owning, operating, and supporting small businesses in the Twin Cities region. She owned a
family childcare business for more than 10 years before moving into the non-profit world and was most recently
a Capacity Coach for childcare businesses at Think Small.
• MCCD welcomes Eva Song Margolis as our Director of Advancement. Using her expertise in community wealth
building she will lead an integrated strategic vision that expands awareness of our impact, priorities, and engage
diverse stakeholders. Eva's commitment to social, racial, and economic justice shines through her work and
board membership with Hmong American Farmers Association.
Funding & Policy Updates
• March 14 – MCCD was named an approved lender for MN DEED’s new Expanding Opportunity Loan Fund with a
$600,000 lending allotment, the maximum loan size. MCCD borrows these funds from DEED at 0.5% to relend to
small businesses. Securing new sources of low-cost loan funds is the key to keeping our interest rates low for
small business borrowers.
Page 13 of 36
Open to Business Report
4
Programming, Partnerships, & Trainings
• January 19 – Open to Business hosted our first in person Small Business Planning Workshop of 2024 at the
MCCD Office. The training was open entrepreneurs throughout the region and provided attendees with the
tools and resources needed to write a business plan.
• February 2 – Our team of advisors learned about the New Markets Tax Credits program through our partners at
Sunrise Banks. We look forward to leveraging this knowledge to help our clients access the program.
• March 19 – A local attorney provided guidance to our team of advisors on the new Corporate Transparency Act
and its requirements; with this information we can help our clients understand the registration and compliance
process.
• March 21 – Building on our Racial Equity trainings from 2023, MCCD kicked off a new training series focused on
Operationalizing Equity within our work. This 20-hour series will occur over the next 6 months.
• April 12 – In partnership with the UMN Law School, MCCD hosted a Small Business Law Q&A webinar where
legal experts provide transaction-based legal assistance to small businesses on a variety of subject matters
including entity selection, franchising, formation, and commercial lease review.
• April 19 – MCCD hosts our second business planning workshop of the year, Blueprinting Success: Financial
Foundations for Startup Businesses. This workshop is designed to equip early -stage entrepreneurs and startups
with essential financial skills and knowledge to build a solid fo undation for success. More details here.
Advertising & Outreach
• In the last quarter, banker and lender outreach occurred specifically with Chase Bank, Merchants Bank,
Minnesota Business Finance Corporation, Minnwest Bank, Royal Credit Union, Sunrise Banks New Markets Tax
Credits team, Think Bank, and US Bank.
• In addition to lending outreach, written or in-person presentations were made and/or networking efforts were
made including City of Mendota Heights check in on Jan 16, Apple Valley EDA presentation Jan 25, UMN Law
School partnership meeting Feb 2, City of Hastings HEDRA presentation on Feb 8, City of Lakeville presentation
Feb 27, Burnsville EDA presentation on March 13, recurring check ins with City of Farmington and Dakota County
CDA.
• The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB. New ads
will be created and updated periodically so keep checking back. The library was created to help streamline how
we share ads with partners and to give partners direct access to choose ads that meet their needs. Access the
Ad Library here.
Quarterly Highlight
Asian Mart LLC
14600 S 10th Avenue South in Burnsville & 464 Concord Street South in South St. Paul
April 1, 2024 - Asian Mart LLC broke ground on their new location in South Saint Paul. The business owner was joined by
his family and friends, along with City staff and officials, the SSP Mayor, Dakota County CDA staff, OTB staff, and Cortrust
Bank to kick off this exciting project. When completed, the project will provide ample warehouse space and a deli,
grocery and bakery areas, food counters and seating for up to 15 guests. The business employs 3 and the expansion aims
to add 3 to 6 new jobs.
Page 14 of 36
Open to Business Report
5
Page 15 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: EDA
Subject: Choose Vice-Chairperson for the EDA for Remainder of 2024
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
With the recent resignation of Katie Porter, the EDA is asked to select a new 2024 Vice-
Chairperson.
DISCUSSION:
At the March 2024 EDA meeting, the officers were selected to serve as Chairperson and Vice-
Chairperson. Katie Porter was selected as Vice-Chairperson but has resigned her City Council
position leaving this position vacant. Per the EDA By-Laws:
Subd. 2 - At the February Authority meeting or the next regular meeting of the EDA each
calendar year, the Authority shall (1) acknowledge City Council's designation of the official
newspaper; (2) establish the meeting schedule for the year; (3) choose a Chairperson and a
Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons
disability or absence, and in case of a vacancy in the office of Chairperson, and until a
successor has been appointed and qualifies to fulfill the duties of Chairperson, and; (4) staff will
serve as the Secretary/Treasurer.
The EDA is asked to select a successor to fill the Vice-Chairperson role for the remainder of the
year.
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
Select a Vice-Chairperson.
Page 16 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Stephanie Aman, Economic Development Coordinator
Department: EDA
Subject: Small Business Resource Fair
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
As Staff form relationships and continue to better understand the Farmington business community,
we have participated in many networking events that help guide the next steps in ensuring our local
business community needs are being met. Staff introduced the idea of a small business resource
fair at one such event and received positive feedback.
DISCUSSION:
The City of Farmington Community and Economic Development Living Workplan Document was
presented at the January 2024 EDA meeting and was well received. Within that document, staff
indicated that they would host/hold a 'lunch and learn' for businesses in July. As we met with
businesses, we realized that the value in having a small business resource fair in July could be a
great fit. After consulting with our partners at Open to Business/MCCD, we have now put together a
framework for this event.
The agenda for the event follows:
Date: Tuesday, July 16
Time: 8-10:30a
7:30am-8:00am: Vendors set up in lobby
8:00am-8:30am: Participants check in, enjoy some coffee and pastries and network
8:30am-9:30am: Vendors have an opportunity to explain to the participants what they can
and do offer to the small businesses
9:30am-10:30am: Tabling in the lobby and connections. We will also offer space if vendors
and participants wish to meet onsite in a private space.
The target audience for this event will be businesses with less than 20 employees. We will start
marketing the resource fair on social media outlets the first week in June. Invitations will be mailed
to local businesses in mid-June with follow ups via email the week of July 8.
Based on feedback from small businesses and our business consultant, staff have been very
thoughtful in who is being invited to table at the event. Vendors range from IT services to
accounting, utility providers to broadband and many in between.
Page 17 of 36
As of this packet submission, fourteen vendors have been invited; three of those have confirmed.
BUDGET IMPACT:
Approximately $200 for materials and breakfast.
ACTION REQUESTED:
No action needed.
Page 18 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Stephanie Aman, Economic Development Coordinator
Department: EDA
Subject: 2023 MicroGrant Awards and Updates
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
In January 2023, the Economic Development Authority asked Staff to develop a program that would
allow the City to meet business where they were at and help them in whatever their next objective
was in their business. A MicroGrant program would provide support to grow and expand small
businesses located in Farmington.
The intended purpose of a MicroGrant program would be to support and encourage business
development (a strategic priority of the City Council), by fueling the entrepreneurial and small
business energy that exists in the community with a small incentive program that would meet
businesses where they are at.
The MicroGrant program was launched on June 1, 2023, and had 4 applicants and 4 funded
projects.
DISCUSSION:
The MicroGrant program fueled conversations from small business owners. For those that chose to
apply, the diversity and creativity in utilizing the funding met the objectives of the EDA - to meet
companies where they were at. In addition to the four that applied and were awarded funds, several
others had indicated a desire to apply, but did not follow through with the application, despite Staff
following up multiple times.
The following four projects were funded by the EDA MicroGrant program. Three projects have
provided pictures and proof of paid invoices; one is finishing a marketing campaign to fully utilize
the funding and has until August to do so.
Fissan Training Kennels
$2500 grant approved at the June 26, 2023 EDA meeting.
This matching grant funding allowed Fissan Training Kennels to complete a sign upgrade that they
had been wanting to do. The new signage is clean and bright and adds a great deal to the facade of
their building. Fissan Training Kennels has met all obligations to provide pictures and invoices with
payment information and has fulfilled the terms of the grant agreement.
Page 19 of 36
Heikkila Studios
$2500 grant approved at the July 17, 2023 EDA meeting
This matching grant funding was used to install a new concrete patio to the west of the building at
349 3rd Street. With this improvement, Heikkila Studios is better able to utilize this space as it
provides a better aesthetic for photography. Heikkila Studios has provided pictures and closed out
invoices and has fulfilled the terms of the grant agreement.
Page 20 of 36
The Pam McCarthy Agency, Inc.
$2500 grant approved at the August 21, 2023 EDA meeting
This matching grant funding is being utilized for mass marketing campaigns to help the Pam
McCarthy Agency reach more people and grow business. The agency has plans to complete
phased mailing campaigns and has until August 21, 2024 to utilize the funds.
Grant Heating and Air
$2500 grant approved at the September 18, 2023 EDA meeting
This matching grant funding was used to complete a needed painting project on the exterior of the
business, as well as spruce up the outside which makes for a more welcoming environment for
customers to come to, along with being a good neighbor. Grant Heating and Air had recently
purchased the building and were grateful for matching funding to help ease the burden of this cost
on a small business. Grant Heating and Air has provided pictures and invoices with payment
information and has fulfilled the terms of the grant agreement.
For the companies that chose to apply, this grant source had significant impact that led to
completion of projects that likely would not have been completed this past year. The beautification
of several of these areas has a positive impact on the surrounding community and neighbors.
BUDGET IMPACT:
No additional impact. A total of $10,000 was awarded to four businesses in 2023.
ACTION REQUESTED:
No action needed.
Page 21 of 36
Page 22 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: EDA
Subject: 2025 Budget - Preliminary Discussion
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
The 2025 budget process is underway. To start the discussions at the EDA level, Staff will provide
an overview of 2024 YTD accomplishments, an update on the 2024 approved EDA Work Plan, and
a summary of approved 2024 budget. This will guide future discussions regarding a proposed 2025
EDA levy amount and budget modifications - to ensure that the EDA activities are impactful, bold,
and continue to advance the community vision and City Council priorities.
DISCUSSION:
2024
This year the EDA funding included dedicated levy dollars to support economic development
initiatives in the amount of $150,000. Attached is the 2024 EDA Budget and Work Plan - illustrating
how the additional funding was allocated and applied towards economic development initiatives, as
well as a calendar that showed the cadence associated with the various activities.
Work Plan - Accomplishments to date include:
The Site Location Partnership (SLP), Minnesota Real Estate Journal (MREJ), My Town, and
Community Venture Network contracts have all been executed and identified efforts are
underway.
o Staff is actively participating at MREJ events serving as speakers, moderating panels,
and visibly marketing the "Unexpectedly Bold" brand.
o Staff attended both the January and May Community Venture Network sessions - and
is conducting follow up visits and conversations with business prospects.
o Two SLP trade shows have occurred. Farmington specific information has been
provided for the shows, Staff is receiving reports from each trade show - including
business contact lists, and business interviews are being targeted for October in
Chicago.
On average, Staff is meeting with 8 different builders/developers per month to discuss
Farmington's vision and story and explore development opportunities and ideas. Many of
these leads come from the MREJ events. There is also specific follow-up associated with
each meeting.
Staff is attending Dakota County Regional Chamber coffees, policy forums, and events -
including hosting a Farmington Coffee Break on Thursday, May 9th.
Page 23 of 36
2024 Budget Status - Overall the budget has been supporting the work plan.
$51,000 of the expected revenues were "unprogrammed" with the note that the uses were
TBD - for site readiness, potential seed money for a future revolving loan program, land
activity, etc. Of those dollars:
o The EDA dedicated transferring $39,900 to the General Fund to offset consultant
costs associated with administering multiple Alternative Urban Areawide Reviews
(AUAR).
o The EDA may consider using a portion of the remaining funds for additional "site
readiness" activities
$50,000 was identified in the budget for Developer Payments (aka incentive programs).
Specific programs to utilize these funds are yet to be identified.
2025
While it is very early in the calendar/budget year, there are some budget predictions that can start
to inform the budgetary needs for 2025 and potential changes to the EDA levy request. For
discussion purposes:
Ongoing Operational Expenses - these will remain fairly consistent with the need for some
increase in Professional Services and Legal based on the complexity of programs and
development opportunities.
Economic Development Programming - Additional funds should be considered for activities
associated with site readiness, implementation of the community vision, and land activity.
Levy Increase - the initial EDA levy of $150,000 provided much needed dedicated funds to
deploy an economic development work plan and build upon the momentum and groundwork
laid in 2023. At a minimum a continuation of the EDA levy at the same amount should
continue, but consideration should also be given to increasing the levy. State statutes limit
the levy amount to 0.01813% of the city taxable market value - which would generate an
amount greater than $500,000. Staff would suggest discussing an increase to the levy of 25-
percent, to a total of $187,500.
BUDGET IMPACT:
Not applicable.
ACTION REQUESTED:
No formal action is requested. The EDA is asked to discuss the existing budget, existing work plan,
and provide direction on future funding levels.
ATTACHMENTS:
2024 EDA Budget
2024 EDA Work Plan and Calendar
Page 24 of 36
HRA/Economic Development 4011 - Current Property Tax 150,000 EDA Levy - first year of dedicated levy
HRA/Economic Development 4955 - Interest on
Investments 1,600 1,000
HRA/Economic Development 5205 - Operating Transfers 50,000 50,000
Total Revenue 201,000
ONGOING OPERATIONAL EXPENSES
HRA/Economic Development 6280 - Books & Subscriptions 150
Various businss publications that help Staff keep
a pulse on business activities throughout the
metro area (Bus. Journal, TC Business, etc.)
HRA/Economic Development 6401 - Professional Services 1,000 5,000
Financial consultant (non-TIF), etc. - to work with
Staff as needed on program development,
proposal review, incentive packages
HRA/Economic Development 6403 - Legal 1,000 3,000
City Attorney - specific EDA legal review
(program guidelines, loan doc, etc.)
HRA/Economic Development 6426 - Insurance 560 600
HRA/Economic Development 6445 - Postage/Shipping
Fees 1,000 Program mailings, direct marketing, etc.
HRA/Economic Development 6450 - Outside Printing 250 2,500 SWAG for events, program postcards, etc.
HRA/Economic Development 6455 - Legal Notices 100 500
HRA/Economic Development 6460 - Member Dues &
Licensure 2,500 3,500
Specific economic development organization
memberships - (2) EDAM, CORENet, MMP,
other
HRA/Economic Development 6470 - Training &
Subsistance 3,500 5,000
Attendance at specific economic development
trainings - (2) EDAM summer/winter, CORENet,
etc.
HRA/Economic Development 6485 - Mileage
Reimbursement 1,000 3,000 Trends + 2 people doing ED
HRA/Economic Development 6505 - Equipment
Repair/Maintenance 1,600 1,000
Annual software maintenance costs - InDesign,
calendarly, other
HRA/Economic Development 6570 - Programming
Expense 10,000 10,000
Payments to outside organizations for
programming - Open to Business, etc.
PROPOSED ECONOMIC DEVELOPMENT PROGRAMMING
HRA/Economic Development 6550 - Development
Payments 60,000 50,000
TO BE DETERMINED - 2 rounds of MicroGrant
or implementation of new/different incentive
program
HRA/Economic Development 7420 - Other 0 64,750
ENHANCED ECONOMIC DEVELOPMENT
MARKETING & PROGRAMMING - CVN
Membership ($4,500), MREJ ($10,000),
Bloomberg matching grant/placemaking
($25,000), Vikings ad or similar strategic print
marketing ($8,000), Site Location Partnership
SLP ($12,500 + travel), MyTown docuseries
project ($25,000)
Total Proposed Expenses 150,000
51,000
Remaining Proposed Revenue - TBD - site
readiness, revolving loan program,
implementation of community vision, land
activity, other
REVENUE TO ECONOMIC DEVELOPMENT ACTIVITIES
EXPENSES/ECONOMIC DEVELOPMENT ACTIVITIES & WORK PLAN ITEMS
Page 25 of 36
City of Farmington
Community and Economic Development
Living Workplan Document
Boldly
Defining
Our Future
Page 26 of 36
2024 Ini�a�ves &
Calendar of Planned and Tenta�ve Events
Ongoing Opera�ons:
Ongoing operations describe the day-to-day activities and functions conducted by Staff under the
“economic development” umbrella. These activities ensure that Staff are engaged with the local business
community, are growing and maintaining relationships with economic development champions and
partners, are representing Farmington outside of the community to a broader audience and are building
tools and resources necessary to support the economic development vision and goals.
• Prepare responses to Request for Informa�on (RFIs) related to proposed projects and site
searches.
• Organize visits as part of the site selec�on process.
• Conduct business visits to current businesses to beter understand industry composi�on,
business needs, and growth plans.
• Atend Farmington Business networking events.
• Atend relevant Chamber of Commerce events.
• Meet with landowners to beter understand future growth opportuni�es.
• Maintain database of available property (land and buildings.)
• Coordinate and par�cipate in ribbon cu�ngs/ground breakings to celebrate new business
openings and/or business expansions.
• Serve on statewide commitees and hold leadership posi�ons in organiza�ons dedicated to
economic development.
• Stay abreast of regional, state, and federal programs (grants, loans, etc.) to support businesses
and economic development ini�a�ves and efforts.
Page 27 of 36
Enhanced Marke�ng, Business Recruitment, and Promo�ons:
Staff has worked to identify partnerships that leverage access and connection to site consultants,
businesses/industries, and the brokerage community. These are the audiences that need to know,
understand, and believe in what Farmington has to offer – so they can share Farmington opportunities
with their clients or leadership when making location and business decisions.
SLP: Site Loca�on Partnership
SLP is a site consul�ng firm. Their core business is loca�on advisory work for corporate clients,
and they leverage those rela�onships and capabili�es as a site selec�on firm to help economic
development organiza�ons with targeted industry recruitment and lead genera�on. The
Farmington EDA partnership with SLP gains the City of Farmington access to:
• Targeted Industry Prospect Development (4 industries)
• Site Consultant Appointment Se�ng (6 mee�ngs)
• Trade Show Representa�on (6 shows)
• Site Selector Networking Forum Access (6 shows in conjunc�on with trade shows)
• Web Promo�on
MREJ: Minnesota Real Estate Journal
MREJ is an industry leader in the commercial real estate market for news, informa�on, and
networking. For this sponsorship, the City of Farmington has access to many of the real estate
journal events held throughout the year, including a minimum of 4 guaranteed speaking roles.
These events are atended by brokers, developers, real estate agents, and more. Serving as
experts in the field on the panels giv es posi�ve exposure to the City.
Through this partnership, Staff has secured mee�ngs with brokers, developers, business
representa�ves, financial ins�tu�ons. From these interac�ons, one developer has executed a
purchase agreement on property in Farmington and is preparing to begin the en�tlement
process associated with delivering a project.
CVN: Community Venture Network
CVN is part of The Brookshire Company – and exists “to connect communi�es with businesses
searching for opportuni�es to expand and grow their opera�ons.” They have a track record for
bringing economic development professionals viable opportuni�es and a reputa�on for helping
companies discover communi�es. For many years, staff have worked with CVN and found value
in the services it provides. Included in the membership is:
• Invita�on to atend CVN sessions hosted three �mes per year
• Introduc�on to a minimum of 24 business prospects seeking to grow or expand.
This long-standing rela�onship also provided a connec�on and introduc�on to the “My Town”
project, that will be hosted and produced by Emmy-award winning journalist, Cory Hepola, who
is now an employee of The Brookshire Company.
Page 28 of 36
Unexpectedly Bold
In addi�on to the partnerships that staff have iden�fied and con�nue to nurture, the marke�ng
campaign, “Unexpectedly Bold” has gained quite a bit of aten�on. Staff con�nue to build out the suite
of materials that are u�lized at events and personalize the materials to each event we atend.
Page 29 of 36
Program Development
The EDA has traditionally provided programs (grants) to support small businesses. Ideally these programs
should meet businesses where they are at to encourage growth and enhancements to the city’s diverse
and valued small business foundation. In addition to providing local programs, it is important to leverage
regional, state, and federal programs as well. As Farmington continues to be a desirable location for
business growth and attraction, growing its exposure to new business development opportunities – it is
also necessary to evaluate how the EDA can use its funding in an effective way. The following activities
will be undertaken to ensure that Farmington has an effective and useful tool kit to support and attract
businesses:
• Review past year(s) grant ac�vity and poten�ally propose program modifica�ons.
• Meet with business community to understand their needs in order to develop tools that can
support local business community.
• Research programs offered by other communi�es to understand applicability in Farmington.
Page 30 of 36
WORKING CALENDAR OF EVENTS, ENHANCED MARKETING OPPORTUNITIES, & ECONOMIC
DEVELOPMENT ACTIVITIES
January July
• MREJ Apartment Summit (over 750 par�cipants in
2023)
• CVN Networking/Discovery event
• EDAM Winter Conference
• MN Marke�ng Partnership Mee�ng
• My Town Farmington-centric promo�ons begin
• Business visits
• Lunch and Learn
February August
• SLP – IME West Trade Show – Anaheim • MREJ Summer Bags Tournament
• Chamber – State of the County
March September
• MREJ – Land Development Summit – speaker
• Chamber – Meet the Chamber event
• CVN Discovery/Networking Event
• SLP – IMTS Trade Show Chicago
• MN Marke�ng Partnership – Chicago
Market Visit
April October
• Chamber – Advocacy and Issues Forum - speaker
• MREJ – Women in Real Estate Summit - speaker
• MREJ – Data Center Real Estate Summit
• MREJ – Commercial Real Estate Awards
• My Town - Fall release party
• SLP – Fabtech Trade Show – Orlando
May November
• City of Farmington hosted Chamber Coffee Break
• MREJ – Retail and Restaurant Summit
• CVN Networking/Discovery Event – May 17
• MREJ Southeast Metro Development Summit –
May 22
• MREJ – Industrial Real Estate Summit –
speaker
• Chamber Business Excellence Awards
June December
• MREJ – Mid Year Apartment Summit
• MREJ – Mid Year Commercial Real Estate Forecast
• My Town filming
• MN Marke�ng Partnership Mee�ng
• EDAM Summer Conference
• Chamber – Legisla�ve Wrap-up Session
• Business Holiday Gathering
• Chamber – Elec�ons Wrap and Implica�ons
for Business
Addi�onally, staff schedule and conduct monthly business (BRE) mee�ngs and par�cipate in Farmington
Business monthly morning coffees.
Page 31 of 36
ECONOMIC DEVELOPMENT AUTHORITY AGENDA MEMO
To: Economic Development Authority
From: Deanna Kuennen, Community Dev Director
Department: EDA
Subject: Director's Report
Meeting: Economic Development Authority - May 20 2024
INTRODUCTION:
Attached please find a summary of recent economic development activities.
DISCUSSION:
Attached please find a summary of recent economic development activities. Staff will be available
to answer questions.
BUDGET IMPACT:
Not applicable
ACTION REQUESTED:
No action requested. This item is information and is provided to communicate how the EDA time
and money resources are allocated and to track and measure the impact of initiatives.
ATTACHMENTS:
05-2024 meeting with attachment
Page 32 of 36
Reporting Period:
May 2024
DIRECTOR’S REPORT – providing project highlights and a summary of
economic development activity.
Projects/Initiatives • Ebert Apartments
Construction is progressing nicely. The project is still on-track for a
final Certificate of Occupancy being issued in mid- to late-September,
with a Fall 2024 opening. The Dakota County RIG has been completed and closed out. The project was awarded $250,000 to assist with the demolition, clean-up, and site preparation.
• Community Vision/Comprehensive Plan Update - HKGi A joint Planning Commission/City County work session was held in March to review the draft future land use plan. Based on the input received – Staff have been working with HKGi to refine the future land
use plan, focusing on preserving corridors for commercial development and overlaying the county’s transportation plan to ensure key intersections are identified. A follow-up joint work session is being scheduled in June to discuss the revised future land use plan.
• Small Business Resource Event – planning is underway for a July
event.
• MREJ Staff moderated a panel at the 20th Annual Land Development
Summit, served on a panel at the Women in Real Estate Summitt, and
is moderating a panel at the SE Metro Development Summit later this month. The City of Farmington was a finalist for the 2024 MREJ Awards,
City/County of the Year, and Deanna Kuennen was named the 2024
MREJ Economic Developer of the Year at the April 18th ceremony.
• My Town – filming was completed in early May. The docuseries will air later this year, with a late November slot for the Farmington episode.
• BRE – Staff has prepared a BRE plan for the remainder of the year (attached). Staff is open to feedback on the identified schedule. Prospects • Staff worked on more than 40 different proposed/potential projects in
2023. These have varied in size, scale, industry, use, and location. The
prospects are all at different stages, and while some have included
only providing written responses to information requests, others have included site visits and numerous meetings. Staff continues to engage with many different business prospects, developers, and project teams – with the goal of converting the prospecting into actual projects.
Page 33 of 36
• R&L Carriers – this local business has secured additional property in the industrial park to accommodate a nearly 100,000 SF expansion.
The project will be submitting Planning & Zoning applications soon, with an anticipated construction start of late 2024. This logistics company has been in Farmington for 20 years and is growing
nationwide. The project will include job creation of approximately 25 new positions in year one, adding by 11-12% to their workforce each year thereafter.
• Yellowtree Apartments – This project has received all Planning &
Zoning approvals, the preliminary/final plat is slated for approval by
City Council in May, and the tax abatement request has been analyzed with a May 20th public hearing scheduled. The $40 million + project
proposes 168 units of market rate apartments, underground parking,
site amenities, and a connection to downtown.
• Staff continues to work on various potential projects and have conducted numerous meetings with developers and site selectors
already in 2024 – on average meeting with 8 different groups each
month. Staff uses the developer/site selector meetings to share the
Farmington story, discuss opportunities, and identify partners who are
in alignment with the City’s vision and can assist the City in bringing projects forward.
Other
• Staff have been made aware of different potential land sales in the
community. There may be a role for the EDA to evaluate site readiness
and community benefit for different properties.
• Staff have been invited to attend a Minnesota Marketing Partnership
Market visit to Chicago in August.
• Staff continues to stay connected and engaged with the Minnesota Trade Office, DEED, Greater MSP, and other organizations.
Page 34 of 36
2024 BUSINESS RETENTION AND EXPANSION (BRE) PLAN
A Business Retention and Expansion (BRE) Plan is used in economic development to
ensure current businesses that plan and desire to stay in Farmington have the opportunity
to communicate, with staff, current wins and concerns as well as future expansion desires.
Getting out and having conversations with current businesses is important to ensure the
vibrancy of the community is not lost and that staff stay aware of opportunities to help
businesses stay and grow here. This creates a positive local connection and provides a
resource to businesses with the hope that the companies see the city as a partner. BRE is
truly the customer service side of economic development – existing businesses are the
heart of the local economy, and ensuring an open line of communication exists keeps them
invested in the community. BRE only works if the visits are genuine.
Knowing that Farmington has limited land available for growth, we need to ensure our
current businesses have what they need for their current business modeling and
understand any growth plans to identify future land opportunities going forward.
Farmington BRE Plan for 2024
Staff understands that in 2021 a BRE initiative was launched. There is value in the
information obtained at that time, and that information will be referenced prior to any visits.
This approach moves away from formal surveys and focuses on authentic conversations.
This approach is also meant to be nimble, and therefore is subject to change as the needs
of businesses and staff arise – and based on feedback and information.
Summer, 2024 – Industrial Park Businesses
Today the industrial park is home to a variety of businesses, who are continuing to make
investments and grow in place. However, the industrial park is nearing capacity with limited
ability to expand. Understanding the growth projections for these valued industries will
help inform future land use decisions. This information is timely especially as the future
land use and comprehensive plan updates are underway. Our goal is to ensure that our
industries can stay in Farmington.
Fall, 2024 – Downtown and Small Businesses
Change is happening downtow n. With the Emery opening in the fall, it’s imperative that we
understand how the downtown businesses are feeling and what they are seeing – to
ensure that their vibrancy remains. Small businesses are the heart of the community, they
already have a robust networking group, and meeting with our downtown and small
businesses make us approachable and accessible to them. Meeting with them allows staff
to understand If there is desire for expansion or a different location for the business, and
what they see as the successes and barriers of the community. Information obtained
through these meetings will help inform future programming. With the small business
resource fair in July, some of these visits may be set up and executed before fall.
Fall/Winter 2024/2025 – Mid-sized Businesses
The fall and winter months will focus on the mid-sized businesses that are located outside
of our industrial park. These mid-sized businesses are the final piece that rounds out the
Page 35 of 36
“Farmington puzzle”. They provide good jobs, a consistent tax base, and are long standing
community businesses and/or businesses that are ready for expansion.
BRE Plans that are authentic lead to program development that benefits business. By
listening and understanding, staff can bring forward relevant suggestions to the EDA for
things such as loan and grant programs. Additionally, these visits can shape ideas on who
else to bring to the conversation for our businesses. Examples of this work would be to
bring in a partner like DCTC to help create a job training program specific to the business,
or it might be simply making a connection to someone. Open to Business is a connection
that we often make to local businesses that are seeking help for financing or overall
business planning. There are so many resources that we can connect businesses to, and
these BRE visits help staff better understand their needs. And sometimes, these simple
conversations lead down unexpected paths to development!
As is often said, economic development is a puzzle and the pieces all fit together – this
BRE plan is part of that puzzle! Staff listening, understanding, and knowing the plans of
businesses help continue to put the economic development puzzle together.
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